1. (a) As used in this section, the term "policy of accident and sickness insurance" does not include the following:

   1. (1) Accident only, credit, dental, vision, Medicare supplement, long term care, or disability income insurance.
   2. (2) Coverage issued as a supplement to liability insurance.
   3. (3) Automobile medical payment insurance.
   4. (4) A specified disease policy.

   5. (5) A short term insurance plan that:

      1. (A) may be renewed for the greater of:

         1. (i) thirty-six (36) months; or
         2. (ii) the maximum period permitted under federal law;
      2. (B) has a term of not more than three hundred sixty-four (364) days; and
      3. (C) has an annual limit of at least two million dollars ($2,000,000).

   6. (6) A policy that provides indemnity benefits not based on any expense incurred requirement, including a plan that provides coverage for:

      1. (A) hospital confinement, critical illness, or intensive care; or
      2. (B) gaps for deductibles or copayments.
   7. (7) Worker's compensation or similar insurance.
   8. (8) A student health plan.
   9. (9) A supplemental plan that always pays in addition to other coverage.

   10. (10) An employer sponsored health benefit plan that is:

       1. (A) provided to individuals who are eligible for Medicare; and
       2. (B) not marketed as, or held out to be, a Medicare supplement policy.

2. (b) The benefits provided by:

   1. (1) an individual policy of accident and sickness insurance; or

   2. (2) a certificate of coverage that is issued under a nonemployer based association group policy of accident and sickness insurance to an individual who is a resident of Indiana;

      may not be excluded, limited, or denied for more than twelve (12) months after the effective date of the coverage because of a preexisting condition of the individual.

3. (c) An individual policy of accident and sickness insurance or a certificate of coverage described in subsection (b) may not define a preexisting condition, a rider, or an endorsement more restrictively than as:

   1. (1) a condition that would have caused an ordinarily prudent person to seek medical advice, diagnosis, care, or treatment during the twelve (12) months immediately preceding the effective date of the plan;
   2. (2) a condition for which medical advice, diagnosis, care, or treatment was recommended or received during the twelve (12) months immediately preceding the effective date of the plan; or
   3. (3) a pregnancy existing on the effective date of the plan.
4. (d) An insurer shall reduce the period allowed for a preexisting condition exclusion described in subsection (b) by the amount of time the individual has continuously served under a preexisting condition clause for a policy of accident and sickness insurance issued under IC 27-8-15 if the individual applies for a policy under this chapter not more than thirty (30) days after coverage under a policy of accident and sickness insurance issued under IC 27-8-15 expires.

As added by P.L.93-1995, SEC.6. Amended by P.L.190-1996, SEC.1; P.L.211-2003, SEC.2; P.L.127-2006, SEC.1; P.L.173-2007, SEC.23; P.L.3-2008, SEC.212; P.L.288-2019, SEC.2.